“Apple and China’s state-owned credit card processor announced plans Friday to launch Apple Pay in China. The payment system extended to Apple will allow cardholders to make payments via Apple iPhones, Apple Watches and iPad,” Ophir Gottlieb writes for CMLViz.com. “But the real news is how the impact of Apple Pay is going to be colossal for the company.”
“Remember that China’s mega holiday season is going to line up perfectly with the release of Apple Pay. China’s biggest shopping season comes ahead of the Lunar New Year holiday, which begins Feb. 8,” Gottlieb writes. “Apple is humiliating Wall Street’s analysts and the mainstream media because both lack the lexicon to understand what’s actually happening in technology. While Wall Street has been calling Apple a ‘phone company,’ Apple has increased spending in research and development by up 90% in just the last two-years.”
“Apple is investing in a lot o[n] innovation and the iPhone is the hub that powers all of it,” Gottlieb writes. “When a person holds their iPhone in their hands, they aren’t holding an upgraded Ericsson flip phone from 2003. They’re holding their wallets. They’re holding their keys. They’re holding their TV remote. More iPhones means more of Apple in the middle of everything we do.”
Apple Pay “is a colossal business in and of itself, and it makes up just one little piece of what Apple is becoming. Never has Apple shown so much innovation, spent so much on R&D and at the same time held so much power in the consumer market,” Gottlieb writes. “Apple Pay is going to be massive.”
Read more in the full article here.
MacDailyNews Take: Gottlieb gets it.
SEE ALSO:
Apple Pay to take on Tencent’s WeChat Wallet and Alipay in China – December 18, 2015
Apple partners with UnionPay to launch Apple Pay in China – December 17, 2015
Pay Finders app for iPhone shows you where Apple Pay is accepted – December 1, 2015
Banks the world over are literally “shaking in their boots”, because they are witnessing the Fintech startups that aim to create agile internet based banks that will compete for the traditional retail bank clients over the Internet. Then add into this mix the iPhone customer worldwide, being armed with Electronic Wallets underpinned by Apple Pay, Touch ID, tokenisation security and THE DIRECT INTENT OF THOSE CUSTOMERS TO SEEK OUT THOSE BANKS THAT SUPPORT THEIR desire for payment security, ease of use and above all banks that support Apple Pay and you have the true “uber moment” for banking payments.
The payment psunami has began!!
You are absolutely right that traditional banks should be very concerned that the tech companies are positioning themselves to undermine and replace them.
But I fear that the traditional banks and their lobbyists will engage politicians and regulators to stifle any regulatory changes that might help the tech companies move into retail or commercial banking. And it will be an easy sell for the banks as fear of change will grip everyone with a vested interest in the status quo.
I want to be optimistic. What a revolution it would be! But experience tells me otherwise.
Unfortunately many regular posters on MDN don’t “get it”. Queue the “let’s fire Tim Cook” haters in 3….2…1… Lol
Apple’s skating to where the puck will be in 2019, 2020…with the acuity of Wayne Gretzky…
Meanwhile, it takes its shots, win or lose, because shots not taken lose 100% of the time…also with the acuity of Wayne Gretzky…
If the Australian banks have their way there will be no Apple Pay here. The Australian banks don’t want to lose a share of their card transaction revenue to Apple even if the result is less fraud and chargebacks.
We can all think of several other industries where the incumbents dragged their heels… or carried on business as usual, murmuring, “La la la, la la la”.
That is because the banks do not truly suffer from fraud. They simply factor it in as a cost of doing business, and consumers pay a higher rate and loans and receive less on deposits. The spread between credit cards and savings accounts is ludicrous. Banks pay around 0.25% on deposits, then charge 12%, 15%, 18%, even well above 20% on credit cards. And that is on top of the transaction fees where they take a cut (1 to 2%) on everything. They don’t want to bother doing any more than they are forced to do about fraud because it really doesn’t hurt them. Fraud hurts consumers, and they do not care.
Was at Sears today. NFC terminals are installed but not working yet. They begin taking Apple Pay in February 2016.😀🔜💥
And that is a perfect indicator of the status of Sears, a company that squandered its brand name and reputation to the point that it was taken over by Kmart (which was in bankruptcy at the time). I will never buy a Craftsman tool again – they are now cheap products outsourced from China that are poorly made and finished. They will rust sitting in your tool box right beside Craftsman tools that my father gave me four decades ago. I had once planned on setting up my children with their own sets of Craftsman tools. Not any more.
Sears, a once great department store that lost its way and was taken over by serial losers. Not a place that you want to shop.
At Sears: Got $30 Haynes Pajamas for $10 each. Also today my Discover Pay worked at Trader Joes but not at Luckys nor at our local health food store chain. So there are still bugs in the Pay buggy.😱😩